Investment in Sri Lanka

Sri Lankan shares hit near 2-week closing low

FIRST CAPITAL’S HEAD OF RESEARCH DIMANTHA MATHEW SPEAKS TO REUTERS

Mon Jun 12, 2017

Sri Lankan shares on Monday ended at their lowest in near two weeks due to profit-booking in banking shares, but foreign inflows helped curb losses.

The Colombo stock index ended 0.09 percent weaker at 6,663.15, its lowest close since May 30.

Last week, the bourse dropped 0.3 percent, posting its third consecutive weekly decline.

“Foreign trade dominated the day. The net foreign trade is low, there is very less local participation as there is no new money coming into the market,” said Dimantha Mathew, head of research, First Capital Holdings PLC.

Turnover was 841.6 million rupees ($5.51 million), little less than this year’s daily average of 897.1 million rupees.

Analysts said investors are still waiting to see the impact of the recent floods and landslides, caused by the worst torrential rains in 14 years, killing over 200 people and devastating crops.

Inflation could rise in the short term, especially due to crop damage and difficulties in distributing fresh food produce and staple food items, analysts said.

Foreign investors were net buyers of 65.7 million rupees worth of shares, extending the year-to-date net foreign inflow to 20.3 billion rupees.

Shares of Bukit Darah Plc ended 4.27 percent weaker, Ceylinco Insurance Plc closed down 2.24 percent, Commercial Leasing & Finance Plc dropped 6.45 percent, while the country’s biggest listed lender Commercial Bank of Ceylon Plc ended 0.07 percent down.

($1 = 152.7000 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sherry Jacob-Phillips)

The comments on this report are provided by the Capital Markets Research Unit of First Capital Holdings PLC an investment bank in Sri Lanka.

The company operates in the capital markets of Sri Lanka in government securities – treasury bills and bonds, stock brokering and share market investments, asset management, private wealth management,  retirement planning, personal financial planning, unit trust, margin trading, capital market research, trustee services, corporate finance advisory services including corporate debt structuring (debentures, trust certificates, commercial papers), valuations, restructuring, mergers and acquisitions, initial public offerings (IPOs) and project advisory. 

The First Capital Group consists of First Capital Treasuries PLC, First Capital Limited, First Capital Markets Limited, First Capital Asset Management Limited and First Capital Equities (Private) Limited covering Colombo, Negombo, Matara, Kandy and Kurunegala.<